Replay 07: Opening the Temple of Learning

Chapter 383 Agreement reached
Wei Xing tried hard to calm down the shock in his heart.

He never imagined that the ringtone license for a promotional song could be sold for five million, and this was just the price offered by the mobile company!

This means that the three songs alone will make a total of 15 million!

Such a huge income made him almost unable to believe his ears.

He suppressed his excitement, managed to stay calm, and said to Zhou Jian and Wang Lin in front of him with a smile: "Manager Zhou, Director Wang, thank you for your company's generous offer."

"This cooperation is indeed very attractive, but as you know, we at Zemeng have always been very cautious in the operation of copyright resources."

"For such a big cooperation, I need to report to my superiors and I can give you a reply after confirmation."

Zhou Jian nodded with a faint smile on his face: "Of course, we understand Mr. Wei's caution."

"This cooperation is also very important to our mobile company, so we are willing to offer this price."

"We hope to gain a strong competitive advantage in the market, and these songs from your company are exactly the 'explosive hits' we need."

Wang Lin agreed, “Yes, President Wei, we can even consider extending the cooperation period.”

"We are willing to make flexible adjustments to the term, and of course, we can also increase cooperation in subsequent business."

Wei Xing nodded, trying to remain calm: "I will report this news to the company as soon as possible and give you a reply."

Seeing that Wei Xing did not agree immediately, the two men said no more and stood up to say goodbye.

After seeing off the two representatives, Wei Xing couldn't help but take a few deep breaths, his heart already filled with excitement.

The same song, why didn’t he encounter it during the thousand days?

He quickly returned to his office, picked up his cell phone and called Lu Shan directly.

The moment the call was connected, Wei Xing lowered his voice.

With a hint of uncontrollable excitement, he said, "Boss Lu, the mobile company just sent someone over and brought us a big order."

Lu Shan on the other end of the phone said calmly, "Oh? What big order can make you so excited?"

Wei Xing suppressed his excitement and tried to appear calm, but his tone was still filled with joy: "Boss Lu, this is what happened. A representative from China Mobile came over to discuss cooperation."

"They want to make our songs "You Are in the Distance", "Waiting for the Wind and the Rain" and "Chalk Words of Love" into ringback tone and use them in their new ringback tone business."

Lu Shan hummed softly, obviously waiting for him to continue.

Wei Xing took a deep breath and chose his words carefully: "Their offer is very generous, 5 million per song, 15 million for three songs!"

"And only the mobile company needs to buy the ringback tone authorization. If other companies want to use it, we can continue to sell it."

Lu Shan on the other end of the phone was silent for a moment, then smiled softly, as if he was not surprised by the price.

He whispered, "Do they want exclusive ringtone license or non-exclusive?"

Wei Xing immediately replied: "Exclusive authorization, but only for ringback tone services."

"Our copyright for other purposes will not be affected, such as live broadcast and video platforms, which can be authorized as usual."

Lu Shan nodded and said calmly, "Five million for a song is indeed a lot. China Mobile is very sincere."

"But have you ever wondered why they offer such a high price?"

Wei Xing was stunned for a moment, then hesitated and said, "They must have noticed the popularity of our songs in the market, right?"

"These songs are now popular among young people and people in public spaces. They will definitely be popular if they are made into ringtones."

Lu Shan chuckled, with a hint of meaning in his tone: "You are right. However, I think they have deeper considerations."

"Wei Xing, do you know the history of Xiaguo Mobile's ringback tone service?"

Wei Xing was stunned for a moment, then shook his head: "I'm not sure, I just know that ringtones have been around for a long time."

"Mr. Lu, do you mean... this ringtone has a special background?"

Lu Shan on the other end of the phone was silent for a while, obviously thinking about something.

After a moment, his voice sounded low and firm: "Wei Xing, this 15 million does sound very tempting."

“But have you ever thought that the potential of these songs may be much more than that?”

Wei Xing was slightly stunned, and asked in confusion: "Mr. Lu, what do you mean...?"

Lu Shan chuckled, his voice full of confidence: "Wei Xing, you may not know that the mobile ringback tone service was an instant success when it was launched in 2003."

"Smartphones were not yet popular at the time, but the ringback tone service had already attracted a large number of users. In just two years, the number of ringback tone users nationwide exceeded 100 million."

"At that time, the sales of the ringback tone business reached tens of millions, and at its peak, it exceeded hundreds of millions of yuan each year."

Wei Xing was dumbfounded and couldn't help but exclaimed: "Hundreds of millions every year?! The ringback tone business actually has such a big market!"

"That's right." Lu Shan continued, with a hint of meaning in his tone, "Among these hundreds of millions of sales, the top hits are the biggest winners."

"Those popular ringtones can bring in tens of millions of yuan in revenue each year."

Wei Xing was stunned, calculating rapidly in his mind.

If some of their songs really become hits, the annual revenue they bring in may well exceed 15 million!

And this is just the share of ringback tone revenue, not including licensing fees for other platforms and businesses.

"Mr. Lu, do you mean that we shouldn't just be satisfied with the licensing fee of 15 million?" Wei Xing asked cautiously.

"That's right." Lu Shan said with a hint of calm confidence, "Fifteen million may seem generous, but in the long run, we may suffer a loss."

"If these songs really become popular, we can only watch the mobile phone companies earn ringback tone revenue, while we only get a one-time licensing fee."

Wei Xing nodded, completely agreeing with Lu Shan's point of view: "Mr. Lu, what is your suggestion?"

Lu Shan said in a deep voice: "What we want is a profit-sharing model."

"Let the mobile company share the actual ringtone revenue with us. Ze Meng will get 50% of the ringtone revenue for each song!"

When Wei Xing heard this number, his heart was shocked. 50% profit, this was a very bold request!
Although the ringback tone market is huge, mobile companies have always been strong. Can they accept the direct request for half of the share?
Lu Shan seemed to see through Wei Xing's hesitation and smiled faintly: "Wei Xing, you have to understand that China Mobile is in great demand for our songs, so they are willing to pay 15 million."

"Just think about it, if these songs are really popular, we can get a stable income every year through profit sharing, instead of just a licensing fee."

Wei Xing nodded, and gradually understood Lu Shan’s long-term plan: “Boss Lu, I understand.”

"The profit model of the ringback tone business is to charge monthly, and we get a share of the profits every month. This kind of income is much more lucrative than a one-time authorization."

Lu Shan said firmly: "Yes, this is what we want." "China Mobile is now restarting the ringback tone business, hoping to open up the market with the help of our songs."

"What they care about is hit songs, and our songs are their trump cards."

“So, you have to be confident and offer a 50% share and see how they react.”

Wei Xing was excited. Mr. Lu's thinking was indeed different from that of ordinary people.

He had already planned out the entire negotiation strategy in his mind and steadied his breathing.

He said solemnly, "I understand, Mr. Lu. I will negotiate according to your request and strive for a 50% share of each song."

"Very good," Lu Shan praised, "Remember, what we want is not only immediate benefits, but also continuous cash flow."

"The ringback tone business itself has extremely strong sustainable profitability, and this is our real opportunity."

Wei Xing hung up the phone, feeling extremely excited.

The profit-sharing plan proposed by Mr. Lu—50% of the revenue share!
This is a bold and tough request, but it is also because of this that Lu Shan's foresight is demonstrated.

The potential of the ringback tone market is amazing, and Mr. Lu knows that these songs have the opportunity to become China Mobile's trump cards. It is precisely because of this that they have more bargaining chips.

The next morning, Wei Xing walked into the conference room at the mobile company's headquarters with a carefully prepared proposal document.

In the conference room, the senior executives of the mobile company had been waiting for a long time.

Sitting in the main seat was Yang Zhen, director of mobile content business, a man in his fifties with a strong aura.

He has led many important projects, and the current restart of the ringback tone business is one of his main focuses.

"Mr. Wei, welcome." Yang Zhen smiled and nodded, his tone somewhat kind, but his eyes revealed a hint of scrutiny.

Wei Xing smiled in return, but he was already weighing strategies in his mind.

He knew that behind the other person's smile was a strong purpose.

Mobile companies urgently need to seize a batch of hit songs to revive their ringback tone business, and Ze Meng's songs are exactly their target.

After the greetings, Yang Zhen got straight to the point: "Mr. Wei, Zhou Jian reported your company's cooperation intention to me yesterday."

"However, I heard that your company hopes to adopt a profit-sharing model instead of direct licensing fees? Could you explain this in detail?"

Wei Xing smiled slightly and nodded: "Boss Yang, that's right."

"We consider that the ringback tone business itself has long-term market potential. Rather than buying it out all at once, it is better for both parties to share the risks and benefits."

Yang Zhen's eyes flickered slightly, and he said calmly: "Sharing risks and benefits?"

"Mr. Wei, what you said makes sense, but as far as I know, the revenue from the ringback tone market is not as hot as it was in the early years."

"The number of users willing to pay to set ringback tones is far less than it was ten years ago."

Wei Xing smiled and met his gaze: "Mr. Yang, I admit that the market is indeed different from what it was back then, but this does not mean that ringtones have no potential."

"With the rise of mobile Internet, it is more convenient to use ringback tone, and ringback tone and even video ringback tone are experiencing a new revival."

"Our songs have received very good responses in the market and have a broad user base. They are loved by young people, square dance groups and even middle-aged and elderly users."

"This kind of coverage is the basic guarantee for the ringback tone service."

Yang Zhen's face remained calm, but there was a hint of approval in his eyes, as if he agreed with Wei Xing's point of view.

He nodded slowly: "Boss Wei's analysis does make sense."

"These songs of your company are indeed popular songs at the moment. If they can enter the ringtone market, they will definitely have a great response."

Wei Xing smiled slightly and pressed on: "Boss Yang, we hope to adopt a 50% revenue sharing, and settle the bill based on the actual ringtone revenue of each song."

"This will not only ensure your company's competitiveness in the ringback tone market, but also give us at Zemeng the confidence to provide more high-quality songs. After all, hit songs require continuous accumulation."

Yang Zhen frowned slightly. A 50% share was undoubtedly a huge concession for the mobile company.

He was silent for a moment, his eyes became sharp, and he slowly said, "Boss Wei, to be honest, 50% is indeed a bit high."

"We mobile companies also need to bear the costs of platform operation and promotion, so this share ratio is a bit too harsh for us."

Wei Xing had already anticipated the other party's reaction and smiled calmly: "Boss Yang, I understand your concerns, but our songs do have huge market appeal."

"If we choose the profit-sharing model, Zemeng will have the motivation to cooperate with the mobile company in promoting the song, rather than just licensing the song and not caring about the follow-up."

He paused for a moment and continued, "Besides, as you know, China Mobile needs a hit product to start the restart of its ringback tone business."

"Our songs are very suitable for the ringback tone market, both in terms of melody and positive themes."

"If mobile companies want to regain control of this market, they need songs with a broad user base, and we have such resources."

Yang Zhen's brows relaxed slightly, but his expression was still solemn.

After thinking for a while, he said, "Mr. Wei, if 50% cannot be compromised, can your company give us some support in other aspects?"

"For example, can the licensing period be extended a little longer, or can the priority of ringtones for other popular songs be increased?"

Wei Xing smiled and nodded, showing a moderate degree of flexibility: "We can discuss the term. Three years of authorization is our initial idea. If the mobile company has a need, we can extend it appropriately."

“As for the priority of other songs, that’s totally fine.”

“Ze Meng has been expanding its music library. In the future, there will be more original and popular songs. We can give priority to cooperating with mobile companies.”

Yang Zhen pondered for a moment, and the expression on his face relaxed a little.

Obviously, Wei Xing's concession made him feel that cooperation was more feasible.

He looked up at Wei Xing, a smile on his face: "Boss Wei's proposal is indeed sincere."

"Okay, our mobile company agrees to cooperate with us at a 50% profit sharing ratio, and the authorization period is three years."

“We are also looking forward to other priorities.”

Wei Xing was overjoyed in his heart, but he remained calm on the surface.

Nodding slightly, "Thank you Mr. Yang for your trust. I believe this cooperation will bring huge rewards to both parties."

The two sides shook hands and reached an agreement.

(End of this chapter)